What is Buy Now Pay later?
You may have heard the phrase Buy Now Pay Later on Television adverts or seen it mentioned online or in leaflets.
Sometimes Buy Now Pay Later is abbreviated to BNPL or just Pay Later.
The concept of Buy Now Pay Later is pretty simple,
- Choose the items you wish to order
- Select Buy Now Pay Later at the checkout
- Pay close attention to the Buy Now Pay Later date, this is the date you must clear the entire balance by to avoid interest being added
Depending on the amount you are spending and the company offering the Buy now pay later credit, the Buy Now Pay Later period will differ.
Buy Now Pay Later credit usually ranges from 3 months through to 12 months, although some stores and larger purchases may offer a longer period.
If you pay the entire balance back before the Buy Now Pay Later period ends you will not be charged any interest.
HOWEVER, if you don’t clear the entire balance before your Buy Now Pay Later period ends, interest will be applied, charged back to the date of your order and added to the debt.
This will drastically increase the amount you owe.
So if you are thinking about BUY NOW PAY LATER you should only take out this option if you are totally sure you can clear the entire balance in full before the Buy Now Pay Later period ends.